Which of the two scenarios in questions 5 (Scenario A) or 6 (Scenario B) is better and why? What principle is this based on?

Consider the following Scenario A: Purchase Price: $530,000 Amount of funds borrowed: 75% Net income before taxes: $5,602 Remaining after tax cash flow from operations: $28,894 Total Return: $32,559 . Use the formula sheet provided under the Contents organizer (on the Home Page) and calculate: a. Amount financed (round to nearest dollar) b. Amount of equity (round to nearest dollar) c. Net Income Return on Investment (round to nearest 10th of a percent) d. Cash Return on Investment (round to nearest 10th of a percent) e. Total Return on Investment (round to nearest 10th of a percent) Consider the following Scenario B: . Purchase Price: $530,000 Amount of funds borrowed: 85% Net income before taxes: $1,643 Remaining After Tax Cash Flow From Operations: $24,447 Total Return: $28,600 Using the formula sheet provided under the 'Contents' organizer (on the Home page), calculate: a. Amount financed (round to nearest dollar) b. Amount of equity (round to nearest dollar) c. Net Income Return on Investment (round to nearest 10th of a percen) d. Cash Return on Investment (round to nearest 10th of a percent e. Total Return on Investment (round to nearest 10th of a percent)